Since traditional Islamic rules do not permit interest bearing bonds, the venture aims to offer individual retirement products benefiting from non-interest based investment tools rather than interest based profit in attempt to net a potentially lucrative pool of religious clients.
The companies held a press conference Wednesday to announce that sales to be actualized within the framework of the new cooperation would start in Jan, 2011.
Albaraka Türk Participation Bank General Manager Fahrettin Yahşi said the individual retirement system would grow further once those abstaining from interest-based revenue are also included in the system.
“The Individual retirement system is a 13.2 billion Turkish Liras market and 2.2 million people benefit from this system,” he said, adding that they expected more than 10,000 people to use their products in 2011. “There will be more than 6 percent a participation, we think.”
Anadolu Hayat Retirement General Manager Mete Uğurlu, in the meantime, said the company expects to have attracted 6 million customers by 2020.
Source : http://www.hurriyetdailynews.com/n.php?n=lender-and-insurance-alliance-for-non-interest-individual-retirement-2010-10-13 - Oct 13, 2010
